In 2010, A123 received a US$249 million grant from the U.S. Department of Energy for building battery production facilities. Approximately $129 million of the grant was used to build a 550 MWh battery plant in Livonia and another in Romulus.[2] An untapped $120 million grant was abandoned by A123 by May 2012.[3] The company laid off 125 workers in December 2011 as demand for partner Fisker's automobiles had slackened.[4] A123 Systems had more than 3000 employees as of December 2012.[5]

In August 2012, Chinese automotive components manufacturer Wanxiang Group agreed to invest up to $465 million to acquire as much as 80% of A123 Systems;[6] but the acquisition was not completed before A123 filed for bankruptcy.

On October 16, 2012, A123 filed for bankruptcy protection under Chapter 11, Title 11, United States Code. On January 28, 2013, Wanxiang America purchased the preponderance of A123's assets out of bankruptcy for $256.6M and organized A123Systems, LLC.[2][7]

An earlier statement, released by A123 Systems in early October, said that it had entered an asset purchase agreement with Johnson Controls, with the stipulation that the company's bid must be approved by a US bankruptcy court and could be topped by a rival bidder.[8] In the event, Johnson did not win the bankruptcy auction and withdrew its bid in early December.[5]

In early October 2012, the A123 Systems' stock was trading for 27 cents per share, down from a 52-week high of $4.44 per share about a year beforehand.[9]

On March 5, 2008, General Electric, the company, and Think Global announced that the three firms had entered a partnership to enable global electrification of transportation.[citation needed] GE invested US$20 million in the company to help it roll out batteries for Think.[citation needed] The company and Think at the same time signed a commercial supply agreement. The partnership was announced at the 78th annual international Motor Show in Geneva.[14] After over $10 million in investment in the Think Global Think City, A123 ceased production of its L20 battery pack for Think after a single day of production in December, 2008.

In January 2009, A123 systems applied to the U.S. Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) for US$1.84 billion in direct loans to support the construction of new lithium-ion battery manufacturing facilities in the United States, locating the first plant in southeast Michigan near Detroit.[15] The application was still pending as of early 2012, the company estimated that it might be allowed to borrow up to US$233 million from the program.[16]

In April 2009, Chrysler Corp. announced a contract with A123 to supply batteries for their ENVI EV vehicles.[17]

In December 2009, the company formed a joint venture with Shanghai Automotive Industry Corporation (SAIC), the largest automaker in China. This was the first joint venture between a Chinese automaker and a non-Chinese battery supplier. The new venture is called Advanced Traction Battery Systems (ATBS).[22]

In August 2010, A123's co-founder Professor Yet-Ming Chiang spun off a new company from A123 named 24M Technologies, which makes technology that combines concepts in current lithium ion batteries with flow batteries, where tanks of liquid electrolytes combine to create an electric current.[23]

In September 2010, the company opened the largest lithium ion battery manufacturing facility in North America in Livonia, Michigan. When fully operational, the factory is expected to be capable of producing battery packs for the equivalent of up to 30,000 electric cars per year.[24]

In March 2011, the company received its third contract from the United States Advanced Battery Consortium (USABC) in collaboration with the U.S. Department of Energy (DOE): an US$8 million advanced battery development contract to continue developing its Nanophosphate® lithium ion battery systems to meet USABC’s target application for a Power-Assist Hybrid Electric Vehicle (PAHEV) Low-Energy Energy Storage System (LEESS).[25]

Product recall

In early 2012, the company announced the replacement of defective battery packs and modules supplied to about five customers, including Fisker Automotive. The defect caused a Fisker Karma to shut down in a Consumer Reports test. It estimated the recall would cost about US$55 million.[citation needed] Fisker reduced its purchase order of battery from the company to lower its inventory. Cylindrical cells made in China that are used by BMW and others were declared as not affected.[16]

Bankruptcy filing

On October 16, 2012, A123 filed for bankruptcy protection under Chapter 11, Title 11, United States Code. The filing listed assets of $459.8 million and liabilities of $376 million.[26][27] The company also stated that its automotive assets would be purchased by Johnson Controls, a supplier to A123, for $125 million.[28] On January 28, 2013, Wanxiang America purchased the preponderance of A123's assets out of bankruptcy for $256.6M and organized A123Systems, LLC.[2][7] The government business was sold to US firm Navitas Systems for $2.25m.[29]

In May 2011, A123 introduced a lithium ion 12V engine starter battery designed as a lighter-weight, longer-lasting and more environmentally friendly drop-in replacement for lead acid batteries.[34] A123's Nanophosphate® Engine Start Battery was selected to R&D Magazine’s 2011 R&D 100, which salutes the 100 most technologically significant products introduced into the marketplace over the past year.[35]

Killacycle, formerly the worlds quickest electric vehicle, capable of accelerating from 0–100 kilometres per hour (0–62 mph) in less than 1 second.[39]

Ohio State University's Buckeye Bullet, an electric landspeed racer powered by A123's batteries, broke the international electric vehicle speed record in August 2010, reaching 307.666 m.p.h.[40]

In May 2011, A123 signed an agreement with Mavizen, a leader in electric motorcycle racing technology, by which Mavizen will make A123's battery technology available for TTXGP racing and other two-wheel motorsports.[41]

An ultra-light electric vehicle powered by 880 A123 Li-PO4 batteries, Brigham Young University's Electric Blue Streamliner set a land speed record for the 'E1' vehicle class (cars less than 1,100 lbs), averaging 204.9 m.p.h. in two runs in September 2014.[42]

Electric grid

In November 2008, A123 entered into the electric grid market by delivering its first battery energy storage system to AES Corporation for use at several AES substations in Southern California.[43]

In November 2009, A123 announced the commercial operation of a 12MW operating reserve project at the AES Gener Los Andes substation in the Atacama Desert in Chile.[44]

In February 2011, A123 announced its second project in Chile with AES Gener—a 20MW operating reserve energy storage system to be installed at a new 500MW power plant in Northern Chile called Angamos.[46]

In July 2011, A123 announced a contract to supply a 500 kW advanced energy storage system to Dongfang Electric, the third largest manufacturer of wind turbines in China and the country's largest exporter of power equipment, as a demonstration project to help evaluate how advanced energy storage can address the challenges associated with the rapid growth of wind power in China, where only about 72% of the country's wind turbines are connected to the power grid, according to the China Power Union.[47][48]

In October 2011, AES Corporation unveiled a 32 MW energy storage systems featuring A123's battery technology at the Laurel Mountain Wind Farm in West Virginia to be used for renewable integration and frequency regulation. As of its commissioning date it was the largest Lithium Ion battery energy storage system of its kind then in operation.[49] This site was successfully commissioned in December 2011.